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Assume the price of 2 liters of Coca-Cola in Denver, Colorado is $1.99 and in Mexico City it costs 45 pesos. The current foreign exchange

Assume the price of 2 liters of Coca-Cola in Denver, Colorado is $1.99 and in Mexico City it costs 45 pesos. The current foreign exchange rate is 1 USD = 25.30 MXN Pesos. Based on the purchasing power parity theory which currency may be overvalued? (3 points)

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